Capacity Building for Nonprofit Organizations
Is your organization experiencing any of the following scenarios?
You’ve incorporated your nonprofit organization with the state, and filed your 501c3 paperwork. At this point, you and your board may be asking yourselves, “Now what? Are there any other steps that we need to take?”
Your nonprofit organization has been “operating” for over a year. However, you can’t keep board members, you’re unable to secure any volunteers, you have not implemented any programs, and donations are scarce.
You have a strong board with great intentions, but you’re not sure about how to steer the organization. What will happen to the organization in the future?
If you answered yes, you are not alone. Many nonprofit organizations struggle to get started—and once started—to sustain their operations. However, building your organization’s capacity to effectively operate may assist you with realizing the dreams that prompted you to start the organization.
What is capacity building?
Capacity Building encompasses all of the activities that improve an organization’s ability to achieve its mission. In short, capacity building is building a healthy organization. One that is able to achieve its mission effectively and sustain itself over the long term.
Capacity building develops an organization’s core skills and capabilities by strengthening its leadership, management, financial management, fundraising, programs, and evaluative methods.
Key factors for building a healthy organization:
- Strong Board of Directors
- Good Planning
- Being true to the organization’s Mission, Vision, and Values
- Strong Infrastructure
- Fiscal Systems
- Management
- Strong Service Delivery
- Sustainability
- Good Communication
- Clear Roles and Responsibilities
Why is capacity building important?
More than 16% of nonprofit organizations that filed IRS Form 990 during the 1997 time period failed to file in 2002. This implies that they either dropped below the $25,000 filing threshold or went out of business (National Center for Charitable Statistics, 2002). Research suggests that the cause of this high failure rate is not solely a lack of funding. Leadership and management failure is a pervasive cause of nonprofit failure (Norris-Tirrell, Dorothy Anne, 1992). As government entities depend more and more on the nonprofit sector for social service delivery. Nonprofit organizations must be prepared to efficiently and effectively serve their communities. Capacity building strengthens every facet of an organization so that it can function to the best of its ability.
CharityNet USA strives to assist each organization that it encounters with building its capacity to achieve its mission. Our nonprofit experts are here to help you and your board with developing and sustaining your organization. We realize that your communities depend on you for life-saving and life-enhancing services. Let us help you touch lives and make a difference!
Contact us today about our many capacity building initiatives.